Posted by Admin | Posted in Bar Exams, Property, Business & Taxation | Posted on 20-09-2010
Briefly describe the following types of banks: (2% each)
- universal bank
- commercial bank
- thrift bank
- rural bank
- cooperative bank
- How do you characterize the legal relationship between a commercial bank and its safety deposit box client? (2%)
Is a stipulation in the contract for the use of a safety deposit box relieving the bank of liability in connection with the use thereof valid? (2%)
- Differentiate “bank deposits” from “deposit substitutes.” (2%)
- Why are banks required to maintain reserves against their deposits and deposit substitutes? State one of three purposes for these reserves. (2%)
Ozamis Paper Corporation secured loans from ABC Universal Bank in the aggregate principal amount of P100 million, evidenced by several promissory notes, and secured by a continuing guaranty of its principal stockholder Menandro at P45 million; and a real estate mortgage over certain parcels of land owned by Marquez.
The corporation defaulted and the bank extra-judicially foreclosed on the real estate mortgage. The bank, which was the sole bidder for P75 million, won the award.
- Can the bank sue Marquez for the deficiency of P25 million? Explain. (2%)
- If the bank opts to file an action for collection against the corporation, can it afterwards institute a real action to foreclose the mortgage? Explain. (2%)
- Can the bank foreclose on the pledged shares of Marquez and recover the deficiency from the corporation? Explain. (2%)
Andante Realty, a marketing company that promotes and facilitates sales of real property through leverage marketing, solicits investors who are required to be a Business Center Owner (BCO) by paying an enrollment fee of $250. The BCO is then entitled to recruit two other investors who pay $250 each. The BCO receives $90 from the $250 paid by each of his recruits and is credited a certain amount for payments made by investors through the initial efforts of his Business Center. Once the accumulated amount reaches $5,000, the same is used as down payment for the real property chosen by the BCO.
- Does this multi-level marketing scheme constitute an “investment contract” under the Securities Regulation Code? Define an “investment contract.” (2%)
- What procedure must be followed under the Securities Regulation Code to authorize the sale or offer for sale or distribution of an investment contract? (2%)
- What are the legal consequences of failure to follow this procedure? (2%) Read the rest of this entry »